When it comes to the latest US stance vis-a-vis China’s currency manipulation, the jury is out, and based on two recent statements it is more confused than ever.

Religion and politics, are both hot button issues no matter how you slice it, touchy subjects, if you will. Speaking, or writing about them, usually elicits rage, or anger …especially when they are mentioned together, or connected. Un-noticed by most is a ground shaking occurrence, whereby these two highly explosive issues are being joined at the hip. I do not want to anger anyone over their beliefs, so what I write below is entirely my observations of what is seemingly non-apparent to the financial community and to the public at large.

The issue at hand is a potential game changer; negotiations between the two largest holders of gold in the world; “a deal between china and the vatican”.

It was reported yesterday… the Pope has been in talks with China to advance, or bring into the open the Catholic Church’s presence in China; aka Christianity within the nation.

First, I highly doubt these talks are still in the preliminary stages. Rather, the reported negotiations are probably more of a “trial balloon” to a done deal, substantially already made. As you can see here, there is dissent and fear regarding any deal made. I deeply believe, that on the surface, the “public” side of the argument has far more meaning than meets the eye, maybe I am being too cynical, but I have given what I present here with considerable thought. I have a potential theory, if it is incorrect so be it, but the topic is certainly worth exploring in depth.

Some background; you may remember, that in the middle of last year we had a number of world leaders (including President Xi, Obama and the Pope) publicly mention a common refrain, about a “more equal and fair world, as well as a more equal distribution of wealth in the world”? BINGO!…I took these statements to be a veiled warning, of an upcoming “reset” among nations and peoples, whereby the rich, those country’s on the Dollar Standard, would lose wealth and purchasing power to those countries who’s standard of living suffered under Dollar Inflation (the poor). The most obvious way to accomplish this is seemingly a strategic move to reorganize the world trading standard, or even abolishing the dollar as the world’s reserve currency. This makes sense, as I view it, because the U.S. (West) has advantages when it comes to standard of living via borrowing or outright printing money to consume other countries productivity and natural resources. Please keep this thought in mind while reading further.

No matter what you hear or read about China being a “capitalistic” nation, their roots are Marxist, Socialist, or whatever term you would like to use. “Free market capitalists” they are not,

THESE ARE COMMAND ECONOMIES.

Judging from many statements by the Pope, he is also a socialist and as mentioned,…has also spoken of a “more equal and fair distribution of wealth in the world”. From a political ideology standpoint, the Vatican’s influence under a Jesuit Pope and China ruled by an appointed leader are in many ways very close in their world views, in my opinion.

So, what to make of all this? Is the Pope trying to spread Catholicism and China openly embracing it, or is this happening tied to something much, much deeper in fact? Let’s take a step back and look at a couple of commonalities they each hold. First, they each have, or reach, a huge population of over 1 billion people in some form or another. Combined, Catholics and Chinese represent roughly two of every seven people on the planet, or close to 30%. Let’s call this a huge base, for lack of a better term.

Secondly, and much more important, though not “official”, China is THE largest holder of gold on the planet …followed by none other than; The Vatican! Yes, you may tell me the U.S. is “THE” largest holder of gold, with 8,100 tons and you would be “officially” correct …but wrong in reality, as explained many times prior, as the Fed and Treasury continue to resist an audit of same. On the back of a napkin I can show China accumulating 20,000 tons or more. (You might also not agree the Vatican is a large holder of gold, I would ask, and how exactly were they paid during WWII to aid the travels and passports of refugees?) By the way, Franz Pick said before he died, The Vatican held more gold than anyone could imagine. I can “imagine”.

Do you see the dots connecting here, between China and The Vatican? My assumption is, there is now a joining of the world’s two economic giants, both in size and wealth, which the last I knew equals “power”! Seemingly this coming together by these powerful forces gives rise to the old axiom;

“He Who Has the Gold Makes the Rules.”

Now I have to venture, is this rapprochement between the Vatican and China part and parcel of a New World Currency Order, whereby the yuan becomes the concentric world reserve currency, in some fashion, tied to the International Monetary funds Special Drawing Right (SDR)? Maybe, but who really wants that albatross around their neck? History has seen nation after nation assume world currency status only to be hollowed out financially and economically after years of abusing the privilege.

I theorize that China and The Vatican will revalue gold to levels unattainable by individuals and making it very difficult for sovereign treasuries and/or central banks to catch up. As the largest holders, they can effectively “make the price” … the higher they make it, the greater their wealth (and thus power)! I have to ask… What if China marks up gold but does not assume reserve currency responsibilities? What if they mark up gold and let the markets decide what each “currency” is worth …versus gold …based on how much gold held?

Please understand this…China has been financially abused by the West for centuries. Silver was devalued at the turn of the 20th century as a way to impoverish China as they were a Silver Nation. If the above is correct, or even close, and gold is revalued, then what will happen to the exchange ratio of silver to gold? Will the current 70-1 ratio hold or will silver be priced closer to God’s ratio of closer to 10-1?

As a side note, do you still wonder why President Trump has called China the “Grand master of currency manipulation”? Does he have a head’s up, or inkling, that a reset is in the works? I suspect he does.

If this theory is correct, at least we will have a true American as president and working on our behalf as opposed to a leader giving up the keys to the kingdom and throwing its people under the bus in the name of “fairness”? The “One World Government,” or “New World Order Types” as they identify themselves, are strongly opposed to the individual liberty movement rearing it’s head here there and everywhere. Seemingly, the “people” have thrown a monkey wrench into their plans for a One World Order; here and there and everywhere. Populism to them is like a rapidly spreading cancer, that must be stopped dead in it’s tracks. My assumption is; THE WORLD IS ABOUT TO BE HUNG ON A CROSS OF GOLD.

The reason why is that shortly after Treasury Secretary Mnuchin said in a Bloomberg TV interview that there is “no urgency to brand China a currency manipulator”, and that no announcement on currency manipulation will come before the Treasury’s April report (which contradicted an October pledge by candidate Donald Trump to direct his Treasury secretary to name China a manipulator on the first day of his administration), hours later Reuters released an interview with Trump in which he accused China of being a “grand champion” at currency manipulation, adding he had not “held back” in his assessment that China manipulates its yuan currency.

“I think they’re grand champions at manipulation of currency. So I haven’t held back. We’ll see what happens.”

This morning China responded Trump’s accusation, when Beijing said it has no intention of using currency devaluation to its advantage in trade, which presumably excludes China’s August 2015 devaluation which unleashed a period of acute market volatility. Chinese Foreign Ministry spokesman Geng Shuang said he hoped the United States could “fully and correctly” view the exchange rate issue.

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